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Consensus Cloud Solutions, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $87,753,000 from $90,562,000 in the same quarter the previous year. The decrease is attributed to a decline in the Small Office Home Office (SoHo) business.
Cost of revenues for the quarter was $17,658,000, representing 20% of revenues, compared to 19% in the same quarter of the previous year. This increase in cost ratio is due to higher depreciation associated with platform development costs.
The company reported a gross profit of $70,095,000 for the quarter, compared to $73,709,000 in the previous year, with the decline attributed to reduced revenues.
Sales and marketing expenses decreased to $12,500,000 from $15,319,000, primarily due to a reduction in third-party advertising spend.
Net income for the quarter was $21,120,000, down from $24,007,000 in the previous year. The decrease is attributed to a decline in revenues and an increase in other expenses.
Cash provided by operating activities was $110,621,000, while cash used in investing and financing activities was $25,460,000 and $116,809,000, respectively.
Consensus had a working capital of $89,835,000 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a Credit Agreement with certain lenders and a debt repurchase program.
Consensus does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on expanding its Cloud Fax business and highlights its dependence on a few large customers for a significant portion of its sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Consensus Cloud Solutions Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.